The Petroleum and Natural Gas Ministry, on Friday, notified the rules on eligibility conditions for registration of liquefied natural gas (LNG) terminals with the objective of promoting setting up of LNG terminals in an environment of equitable access and commercial transparency so as to foster higher availability of imported LNG in the country.
In a statement issued here, the Petroleum Ministry said the salient features of the new rules include
(i) offer at all times, after registration, 20 per cent of its short term (less than 5-year contract) uncommitted re-gasification capacity or 5 lakh tonnes per annum, whichever is higher, as common carrier capacity;
(ii) adhere to the technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas, as prescribed by the Board by regulations, which are in force, including those prescribed by the Oil Industry Safety Directorate;
(iii) furnish a bank guarantee for an amount equal to one per cent of the estimated project cost of the liquefied natural gas terminal or Rs.25 crore, whichever is less.
